Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Inclusive growth
• Support to underprivileged groups

Environmental Achievements

• Green finance disbursement grew to BDT 4,910 mn in 2022, up sharply from BDT 2,680 mn in 2021.
• Sustainable finance disbursements grew to BDT 66,230 mn in 2022, up from BDT 49,190 mn in 2021.
• Paper consumption reduced by around 17% in 2022 vs. 2021.
• Customer complaints reduced by 39% YoY through digital banking and other initiatives.

Social Achievements

• Number of permanent female employees increased from 639 in 2021 to 687 in 2022.
• Number of female trainees increased from 284 to 312 in 2022.
• City Alo platform empowered many women entrepreneurs.
• Almost 280 women received City Alo entrepreneurship certification in 2022.
• Digital nano loan book crossed BDT 1,000 mn in 2022.
• CSR investment in 2022 was BDT 173.8 mn, with aggregate CSR investment over the last 8 years at BDT 965.8 mn.

Governance Achievements

• Established robust processes and structures expressed in the Code of Conduct and ethical guidelines.
• Implemented a Whistle-Blower Policy.
• Established a Sustainable Finance Committee (SFC) and Emission Reduction Steering Committee (ERSC).
• First Bangladeshi bank to join the Net-Zero Banking Alliance (NZBA).

Climate Goals & Targets

Environmental Challenges

• Sensitivity to the economic climate
• Highly competitive industry
• Regulatory/market disruption
• Employee-related risks
• Client portfolio risks
• IT system failure risks
• Credit management risks
• Legal proceedings
• Liquidity risks
• Credit rating risks

Mitigation Strategies

• Large and diversified borrower base; large and varied product offering; extensive on-ground footprint; government banking partner.
• Longstanding sectoral presence; demonstrated ability to maintain existing client relationships; high focus on winning new clients.
• Provide clients with best services; build agility in competitor response; execute on digitalisation roadmap.
• Focus on employee health and wellbeing; attract, retain and motivate employees; focus on DEI.
• Promote relationship-based banking; sustain leading market position.
• Robust IT systems; strong redundancies; specialist team.
• Strong credit screening standards; high surveillance; regulatory-aligned provisions.
• Specialist Legal team.
• Strong deposit mobilisation; diversified credit mobilisation base; healthy CASA; credit-deposit ratio; refinance windows.
• Credit ratings upgraded in mid-2022.

Supply Chain Management

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Reporting Standards

Frameworks Used: GRI Standards 2021

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 11
• SDG 13
• SDG 17

City Bank's initiatives contribute to these goals through various programs and activities detailed in the report.

Sustainable Products & Innovation

• Green finance products
• Sustainable finance products
• Digital nano loans
• City Ekhoni accounts
• Citytouch
• Digital Islamic DPS

Awards & Recognition

• Top Ten Sustainable Banks in Bangladesh (Bangladesh Bank, BIBM & GIZ)
• Best Sustainable Finance Bank in Bangladesh (Global Finance)
• Best Bank in Bangladesh (FinanceAsia, Global Finance)
• SME Financier of the Year - Asia (Global SME Finance Awards)
• Best Retail Bank - Bangladesh (Retail Banker Asia)
• Best New Islamic Banking Window - Bangladesh (Global Brands Banking & Finance Awards)
• Best Islamic SME Bank in Bangladesh (The Asset Triple A Islamic Finance Awards)
• Best CSR Bank in Bangladesh (Asiamoney)
• Leading Partner Bank in Bangladesh (ADB)

Environmental Metrics

ESG Focus Areas

• Sustainable Finance
• Green Finance
• Corporate Social Responsibility (CSR)
• Core Banking Sustainability
• Financial Inclusion
• Net-zero emissions by 2050
• Green cover enhancement
• Reputation as a sustainable bank

Environmental Achievements

• Reduction in Fuel consumption: 27,790 liters
• Solar Energy Production: 436.8 kwH
• Installation of rooftop solar panels on 19 branch premises
• BDT 11,086 mn disbursed under Green Finance
• BDT 9,852 mn channelled towards sustainable agriculture
• Net-zero carbon emissions declaration

Social Achievements

• CSR investment: BDT 115.23 mn
• Number of CSR beneficiaries: 76,033+
• Donation to Prime Minister’s Relief Fund: BDT 65.5 mn
• Partnership with BFDS for freelancer financial inclusion
• City Alo Women Banking deposit and loan growth of 19% and 41% respectively
• Female representation in workforce: 18%

Governance Achievements

• Strong governance and compliance
• Implementation of National Integrity Strategy
• Robust risk management framework
• Credit rating of “AA1” (long-term) and “ST-1” (short-term) by CRAB

Climate Goals & Targets

Environmental Challenges

• Global macroeconomic challenges (war in Europe and West Asia, inflation, supply chain disruptions)
• Forex crisis in Bangladesh
• Higher interest costs
• Elevated inflation
• Subdued capex
• Pressure on NPLs due to challenging economic conditions
• Less opportunities in corporate sector lending
• Challenging economic landscape limiting business opportunities
• Inflationary environment triggering frequent changes in policy rates
• Weak near-term economic outlook in Bangladesh due to fiscal and external imbalances
• Challenging business environment with tight liquidity impacting borrower repayment capacity
• Weak economic outlook resulting in need for higher provisions against bad loans and NPLs
• Increased cybersecurity and AML & CFT threats

Mitigation Strategies

• Focus on key segments (Islamic banking, HNI, women banking, SME banking)
• Prudent lending approach with precautionary measures
• Credit counselling and business advisory to support customer rehabilitation
• Conservative approach to large lending exposures
• Digitization of key processes
• Investment in hardware, software, and equipment for digital banking
• High levels of surveillance and preparedness against cyber threats
• Linking KPIs with pay to monitor employee performance
• Intensive training to elevate employee skills
• Centralization of back-office functions at branches
• Swift and compliant new account opening (City Ekhoni)
• Credit facilities for non-renewable energy projects
• Roadmap to eliminate carbon emissions by 2050
• Growth in green/sustainable finance

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Integrated Reporting framework, SASB, United Nations Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• Green Savings Account
• Green portfolio
• Digital Nano Loan
• CityGO (NFC Wearable Payment)
• Citytouch virtual debit card

Awards & Recognition

• Best Bank in Bangladesh (Global Finance)
• Best Premium Banking Services in Bangladesh (Asiamoney)
• Best Innovation in Bank (City Remit) (Bangladesh Innovation Award)
• SDG Brand Champion in Climate & Environment (SDG Brand Champion Award)
• Best Islamic SME Bank in Bangladesh (The Asset Triple A Islamic Finance Awards)
• Leading Partner Bank in Bangladesh (ADB)