Climate Change Data

NRB Bank Limited

Climate Impact & Sustainability Data (2018, 2019, 2023)

Reporting Period: 2018

Environmental Metrics

ESG Focus Areas

  • Sustainable Finance
  • Corporate Social Responsibility (CSR)
  • Green Banking

Environmental Achievements

  • Financing environment-friendly projects (renewable energy, clean water, waste treatment)

Social Achievements

  • CSR activities spending BDT 18.57 million (BDT 27 million in 2017), including scholarships and aid to flood victims.
  • Agent Banking expansion to reach unbanked populations.

Governance Achievements

  • Established and maintained good governance and compliance practices.
  • Emphasis on Anti-Money Laundering compliance and zero tolerance for fraud.

Climate Goals & Targets

Environmental Challenges

  • Challenges and vulnerabilities of the banking industry, including high volumes of non-performing loans (NPLs) and governance issues.
  • Climate change and natural calamities affecting Bangladesh.
  • Fraud and financial crimes in the banking industry.
Mitigation Strategies
  • Cautious lending approach to prevent untoward consequences.
  • Emphasis on maintaining asset quality and diversifying into non-funded business.
  • Investment in technology and improved operating controls to prevent fraud.
  • Strengthening risk management and corporate governance.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Country-wide flooding

Reporting Standards

Frameworks Used: Bangladesh Accounting Standards (BAS), Bangladesh Financial Reporting Standards (BFRS), International Financial Reporting Standards (IFRSs)

Third-party Assurance: ACNABIN, Chartered Accountants

Reporting Period: 2019

Environmental Metrics

ESG Focus Areas

  • Sustainable Finance
  • Corporate Social Responsibility (CSR)

Environmental Achievements

  • Financing environment-friendly projects (renewable energy, clean water, waste treatment)
  • Focus on green financing in environment-friendly brick manufacturing projects (since 2017)

Social Achievements

  • Agent Banking expansion to reach unbanked populations
  • CSR initiatives totaling BDT 11.23 million (BDT 18.57 million in 2018)
  • School Banking Program participation
  • Distribution of clothes and essentials to communities in need

Governance Achievements

  • Emphasis on Corporate Governance, transparency, and accountability
  • Implementation of Basel III guidelines
  • Establishment of Board Committees (Executive, Audit, Risk Management)

Climate Goals & Targets

Environmental Challenges

  • Global economic slowdown
  • COVID-19 pandemic impact
  • Challenges in Bangladesh's banking sector (low lending rates, NPLs, liquidity issues)
  • Rising capital requirements (Basel III)
  • Climate change and natural calamities
  • Fraud and financial crime
Mitigation Strategies
  • Meticulous lending approach, avoiding careless credit expansion
  • Focus on liquidity coverage ratio and strengthening capital base
  • Cost reduction strategies (rationalizing operational costs, HR cost alignment)
  • Diverting customers to digital channels
  • Emphasis on portfolio management and selective growth
  • Focus on emerging corporate sectors
  • Strengthening credit quality and loan recovery

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Hoda Vasi Choudhury & Co., Chartered Accountants

Sustainable Products & Innovation

  • Green financing products

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Green Finance
  • Financial Inclusion
  • Sustainable Development
  • Corporate Social Responsibility (CSR)

Environmental Achievements

  • Financing environment-friendly projects (renewable energy, waste management, green industries)
  • Declared 2024 as “NRB Bank Go Green” to reduce GHG emissions

Social Achievements

  • Agent Banking expansion reaching underserved populations
  • School Banking program participation
  • Tailored products for women and underprivileged individuals
  • Focus on SME financing, particularly women-led enterprises

Governance Achievements

  • Implementation of a Prompt Corrective Action (PCA) framework (scheduled for 2025)
  • Advocating for mergers and acquisitions among financial institutions
  • Emphasis on transparency, accountability, and sound management practices

Climate Goals & Targets

Environmental Challenges

  • Governance deficiencies in the Bangladeshi banking sector
  • Scarcity of foreign currency liquidity
  • Loan irregularities
  • Depreciation of the local currency
  • High Non-Performing Loans (NPLs)
  • High inflation
  • Slowdown in private sector credit growth
Mitigation Strategies
  • Bangladesh Bank's intervention in the foreign exchange market
  • Import restrictions
  • Measures to safeguard foreign currency reserves
  • Contractionary monetary policy to curb inflation
  • Raising the policy rate
  • Abolishing lending rate caps
  • Introducing the SMART rate
  • Halting devolvement for lending to the government
  • Promoting exports and remittances
  • Attracting foreign direct investment (FDI)
  • Improving the trade balance
  • Prompt Corrective Action (PCA) framework
  • Advocating for mergers and acquisitions in the banking sector

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Financial Reporting Standards (IFRS)