BRAC Bank PLC
Climate Impact & Sustainability Data (2018, 2022)
Reporting Period: 2018
Environmental Metrics
ESG Focus Areas
- Financial Inclusion
- Technology
- Governance
- Social Responsibility
- Green Banking
Environmental Achievements
- Migrated to Oracle EBS (myBBL) for ERP, automating HR and finance functions, contributing to greener banking.
Social Achievements
- Launched TARA, a comprehensive women's banking proposition, attracting 200,000 female customers and nearly 2,900 women SME entrepreneurs.
- Significant CSR investments (BDT 111 million) in sustainable programs.
- Agent Banking launch, creating new employment opportunities in rural areas.
Governance Achievements
- Consecutive SAFA BPA Award for financial statements.
- Rated 'The Best Bank' by three top Bangladeshi and two international credit agencies.
- Strong emphasis on corporate governance, compliance, ethics, and transparency.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Become the best bank in Bangladesh by 2020.
- Be fully digital within a couple of years.
Short-term Goals:
- Maintain NPL ratio below 2% in 2019.
- Achieve 12.50% CRAR by 2019.
Environmental Challenges
- Liquidity crisis in the money market.
- Rising interest rates and regulatory changes.
- Increasing non-performing loans (NPLs).
- Intense competition in the banking industry.
- Fluctuation of foreign exchange rates.
Mitigation Strategies
- Increased capital strength, robust liquidity position, and balanced loan-to-deposit ratio.
- Restructured credit undertakings and robust risk assessment process.
- Continuous collection efforts and monitoring.
- Investment in technology and process improvements.
- FX risk mitigation techniques (forward contracts, balancing FCY assets and liabilities).
Supply Chain Management
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Green financing
Reporting Standards
Frameworks Used:
Certifications: ISO 27001:2013
UN Sustainable Development Goals
- Goal 1 (No Poverty)
- Goal 2 (Zero Hunger)
- Goal 5 (Gender Equality)
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
BRAC Bank's initiatives contribute to these goals through financial inclusion, women's empowerment, green banking, and support for sustainable projects.
Sustainable Products & Innovation
- TARA (women's banking)
- Agent Banking
- Green financing initiatives
Awards & Recognition
- SAFA BPA Award
- AsiaMoney awards
- GBA Women’s Market Champion Award
- VISA “Excellence in POS Acquiring Business” award
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:646,643 tCO2e (Scope 1 & 2 from business loan portfolio)
Waste Generated:135 tons (recycled paper)
ESG Focus Areas
- Financial Inclusion
- Sustainable Financing
- Digital Transformation
- Sustainable Business Growth
- Good Governance
- Environmental Sustainability
- Social Responsibility
Environmental Achievements
- Recycled 135 tonnes of paper.
- Implemented a zero-waste policy regarding paper use.
- Installed solar panels in head office and branches.
- Increased the share of renewable energy in total power consumption.
- Implemented energy reduction initiatives and use of energy-efficient products.
Social Achievements
- Launched ‘SUFOLA’, a unique product for crop financing.
- Reached the milestone of serving 1 million SME clients.
- Disbursed BDT 189 million towards CSR initiatives in healthcare, education, and disaster management.
- Launched ‘Druti’ for emerging small businesses.
- BRAC Bank TARA, a comprehensive banking solution for women, completed five years of operation.
- Onboarded 1,246 full-time co-workers (FTE) and 1,738 outsourced staff in 2022.
- First bank in Bangladesh to actively recruit transgender and persons living with disability.
Governance Achievements
- Maintained a high proportion of independent directors on the board (67%).
- Achieved improved credit ratings in 2022 compared to 2021.
- Implemented robust internal control and compliance framework.
- Consistently ranked among the top 10 sustainable banks by Bangladesh Bank for two consecutive years.
- First bank in Bangladesh to be endorsed by the ISO 27001:2013 certification.
Climate Goals & Targets
Long-term Goals:
- Catering to the customers’ evolving needs with customised solutions.
- Strong focus on SMEs to ensure easy access to finance for the unbanked missing middle.
- Improve credit and collection processes to restrict NPLs within desired levels and further review policies and procedures to ensure portfolio quality in the backdrop of business growth objectives.
- Establish a detailed data strategy and initiate, among other things, a drive towards improved analytics for management reporting.
- Develop more measures to monitor and manage environmental footprint.
Medium-term Goals:
- Implement tech-based solutions for faster customer onboarding, client service, and internal processes.
- Optimise client reach through existing distribution channels and adopt new digitised distribution networks.
- Introduce enriched hiring tools to improve person-job fit, reduce recruitment times, and lower hiring costs.
- Implement more elaborate analytics solutions for improved credit appraisal, faster customer acquisition, and forecasting needs.
- Expand digital lending.
Short-term Goals:
- Develop new products/services to generate additional income.
- Sustained growth in the SME sector.
- Digital innovation to be more competitive.
- Footprint coverage across the country.
- Financial inclusion through new products and channels for unbanked populations.
Environmental Challenges
- Ongoing macroeconomic uncertainty and external factors.
- Risks of cybersecurity breach and data loss.
- Evolving customer needs.
- Gaps in skills and knowledge within human resources.
- Non-compliance with laws and regulations.
- Growing competitive pressures and emergence of disruptive FinTech.
- Environmental and social risks.
Mitigation Strategies
- Developed a comprehensive risk-management strategy and continuously monitoring geopolitical risks.
- Strengthened cybersecurity by continuously enhancing cybersecurity posture and enhancing end-to-end IT landscape visibility.
- Incorporated digitalisation into all facets of the organisation.
- Offered benchmarked compensation and benefits, career advancement opportunities, and employee training programmes.
- Ensured constant compliance with applicable rules and regulations.
- Established a sustainable finance unit to govern the efficient decision-making, implementation and accountability of sustainability matters.
- Implemented initiatives to reduce climate change and ESG risks (managing carbon emissions, digital banking initiatives, use of renewable energy, responsible financing).
Supply Chain Management
Responsible Procurement
- Rigorous pre-audit check for procurement decisions.
- Online bidding system and digital signature solution.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI Standards 2021
Certifications: ISO 27001:2013
UN Sustainable Development Goals
- SDG 1 (No Poverty)
- SDG 8 (Decent Work and Economic Growth)
- SDG 10 (Reduced Inequalities)
- SDG 13 (Climate Action)
BRAC Bank's initiatives contribute to these goals through financial inclusion, sustainable financing, and community development programs.
Sustainable Products & Innovation
- Planet Solution (Sustainable Finance proposition)
- Sufola (Agriculture loan product)
- Druti (loan for emerging small businesses)
- Shubidha (digital lending app)
Awards & Recognition
- Data Champion Award 2022 (Financial Alliance for Women)
- Sustainable Bank of the Year (South Asian Business Excellence Awards 2022)
- Best Internet Banking Service Provider (South Asian Business Excellence Awards 2022)
- Global FinTech Innovation Award (IBS Intelligence)
- Top 10 Sustainable Banks (Bangladesh Bank)