Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Digital Innovation
• Community Investment
• Employee Well-being

Environmental Achievements

• Not disclosed

Social Achievements

• Contribution of BDT 22.70 MM to the community, including the Prime Minister’s Relief Fund
• 92% customer satisfaction with call center performance
• Achieved ISO/IEC 27001:2013 certificate for information security management systems

Governance Achievements

• Strengthened corporate governance and risk management systems
• Re-constituted Board Audit Committee and Board Executive Committee
• Appointed two Non-Executive Independent Directors

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on the socio-economic order, resulting in economic disruption and uncertainty
• Liquidity crisis in the financial market
• Reduced loan appetite and intense competition
• Maintaining asset quality and collection pace

Mitigation Strategies

• Implemented work-from-home policy and digital customer service
• Cost optimization measures (relocating offices, reducing spaces, etc.)
• Cash and liquidity management strategies
• Empathetic approach towards borrowers
• Initiatives to transform the company digitally
• Roll out of hub and spoke model
• Ensuring medium to long-term funding-led growth
• Exploring alternative funding sources
• Cautious investment in the capital market

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO/IEC 27001:2013

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• SAFA Best Presented Annual Report (2014-2017, 2018, 2019)
• SAFA Corporate Governance Award (2017)
• ICAB Best Presented Annual Report (2014-2017, 2018, 2019)
• ICAB Corporate Governance Award (2016, 2017)
• ICMAB Best Corporate Award (2016, 2017)
• SAARC Anniversary Award (2019)
• ICAB Integrated Report Award (2018, 2019)
• ICAB Corporation Governance Disclosures Award (2019)

Environmental Metrics

ESG Focus Areas

• Sustainability

Social Achievements

• Continued dual model of work in 2021 to ensure employee safety with minimal physical presence at office premises.
• Motivated and helped employees to be vaccinated.
• Launched Shikha Chatbot for customer service.
• LB Foundation provided necessaries to patients in need due to COVID-19 outbreak.
• LB Foundation sponsors warm clothing distribution program and cooperated with DNCC for tree planting initiative.
• Shikha bicycles given to women for empowerment.

Governance Achievements

• Appointed two Independent Directors in compliance with the SEC Notification No. BSEC/CMRRCD/2006-158/207/Admin/80 Dated June 3, 2018.
• Re-constituted the Board Audit Committee and Board Executive Committee.
• Strengthened the process of business operations through rearrangement of Corporate Organogram.
• Revised the Credit Policy and incorporated Environment Risk Management Procedure (following guidelines of Bangladesh Bank).
• Approved ICT Policy and Green Banking Policy.
• Strengthened the process of identification, recording and disclosure of Related Party Transactions.

Climate Goals & Targets

Environmental Challenges

• Challenges caused by the COVID-19 pandemic.
• Economic strain caused by the ongoing war in Ukraine.
• Rise in global oil prices increasing the country’s other commodity prices.
• Rise in the costs of RMG exporters.
• Increase in the costs of doing business.
• Increase in the provision charge for loan and advance significantly in 2021 due to the lifting of flexibility on asset classification by the central bank.
• Intense competition for keeping margin, retaining asset client through checking take over by competitors, mobilizing low cost fund.

Mitigation Strategies

• Focusing on welfare of employees.
• Emphasized on safety of customers by encouraging them to use digital tools.
• Rationalization of operating expenses.
• Efficient management of working capital.
• Improved deposit management schemes.
• Received foreign funds demonstrating exceptional creditworthiness and efficient management.
• Launching of the hub and spokes model.
• Continuing further optimization of the discretionary expenses.
• Continuous improvement in asset quality.
• Continuing growth of SME Asset Portfolio.
• Rapid digital transformation of the company by using online application system, FinSmart and Chabot.
• Ensuring better management of NPL and regularize collection process accordingly.
• Exploiting the capital market condition, optimizing the bullish trend by keeping the potential risks in mind.
• Focus on retail long term deposits and refinancing under government stimulus packages.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Payment Card Industry Data Security Standard (PCI DSS)

Awards & Recognition

• MasterCard Credit Business (Domestic) and MasterCard Contactless awards in 2021.
• Honorable mention in Bangladesh Fintech Award 2021 for Shikha Chatbot.
• Joint first position in the Corporate Governance Disclosure Category for Best Presented Annual Reports in 2020 at the 21st ICAB National Award.
• Second position under the Integrated Reporting category and Certification of Merit in the Financial Service Sector Category for Best Presented Annual Reports in 2020.
• 1st runner up position in the SAARC Anniversary Award for Corporate Governance and 2nd Runner Up position in the Integrated Reporting award for 2020 awarded by South Asian Federation of Accountants.
• ICMAB Best Corporate Award 2020.