Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Corporate Social Responsibility (CSR)
• Green Banking
• Financial Inclusion

Environmental Achievements

• Financed various environment-friendly projects like CNG projects, Effluent Treatment Plant (ETP) of manufacturing industries, Auto Brick Field using Hybrid Floffman Kiln (HHK), etc.
• Included special module on “Green Banking: prospect in Banking Sector” in different training programs.

Social Achievements

• Spent Tk.25.04 crore on CSR initiatives covering education, health, and other underprivileged sectors.
• Continued financial assistance to meritorious but poor students, particularly in rural areas.
• Opened 1,07,218 deposit accounts for marginalized people under financial inclusion initiatives.

Governance Achievements

• Implemented a comprehensive policy on “Money Laundering & Terrorist Financing Risk Management Guidelines”, “Money Laundering & Terrorist Financing Risk Assessment Guidelines”, “Customer Acceptance Policy” and “Guidelines for Prevention of Trade Based Money Laundering”.
• Reconstituted Complaint Cell as Central Customer Services and Complaint Management Cell (CCS & CMC) to improve customer service.
• Established a robust risk management system in line with Bangladesh Bank guidelines.

Climate Goals & Targets

Environmental Challenges

• Nationwide COVID-19 pandemic impacting economic activity.
• Volatile capital market and global recession.
• Declining trend of private sector credit growth.
• High volume of non-performing loans (NPL).
• Escalation of loan write-offs, major scams, irregularities and heists in banks.

Mitigation Strategies

• Focused on maintaining asset quality rather than rapid portfolio growth.
• Implemented stringent credit management and ethical business practices.
• Strengthened credit division for regular supervision and monitoring.
• Reformed Recovery Division with new strategies and policies.
• Implemented timely and appropriate decisions to flourish credit portfolio.
• Took initiatives to reduce all types of costs.
• Implemented protective measures against COVID-19 contamination.
• Introduced stimulus packages and liquidity support.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Environmental Sustainability
• Social Sustainability
• Governance

Environmental Achievements

• Reduced paper waste through green banking initiatives and promoting online communication.
• Developed SBL DigiBanking App to reduce physical movement and fuel consumption.

Social Achievements

• Transformed into a Shari’ah-based bank.
• Implemented various CSR programs in education, health, disaster management, and community development.
• Provided scholarships and stipends to underprivileged students.
• Donated to Prime Minister’s Relief Fund for disaster management.

Governance Achievements

• Established a Sustainable Finance Division (SFD) and a Sustainable Finance Committee (SFC).
• Developed a Green Office Guide.
• Implemented Environmental and Social Risk Management (ESRM) practices.
• Strengthened Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) programs.

Climate Goals & Targets

Environmental Challenges

• Rising burden of non-performing assets.
• Growing threat of cybersecurity.
• Changes in regulatory policies.
• Environmental risks associated with client/investee activities.

Mitigation Strategies

• Implemented robust risk management systems.
• Incorporated environmental risk management into investment risk methodology.
• Provided training and workshops on sustainable banking and ESRM.
• Developed and implemented Green Banking Policy, Green strategic plan and Green office guide.

Supply Chain Management

Responsible Procurement

• Supporting local procurement (100% of total spending on suppliers in 2021).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Third-party Assurance: GRI South Asia and iota Consulting BD (review); Internal assurance by Md. Touhidul Alam Khan

Sustainable Products & Innovation

• SBL DigiBanking App

Awards & Recognition

• Best Bank for Sustainable Business Transformation- Bangladesh 2021 (Global Economics Limited)
• Business Transformation Award-2021 (World Marketing Congress)

Environmental Metrics

ESG Focus Areas

• Sustainable finance
• Islamic Shari'ah compliance
• Corporate Social Responsibility (CSR)
• Financial inclusion
• Green banking

Environmental Achievements

• Financed various environment-friendly projects like CNG projects, Effluent Treatment Plant (ETP), Auto Brick Field using Hybrid Floffman Kiln (HHK), etc.
• Included a special module on “Green Banking: prospect in Banking Sector” in training programs.

Social Achievements

• Spent Tk. 14.04 crore on CSR activities covering education, health, and other underprivileged sectors.
• Provided financial assistance to meritorious but poor students.
• Financial inclusion initiatives: opened 91,887 deposit accounts for cleaners, street children, social safety beneficiaries, etc.

Governance Achievements

• Reconstituted Complaint Cell as Central Customer Services and Complaint Management Cell (CCS & CMC).
• Improved Shari'ah Compliance.
• Maintained CRAR of 14.31% (solo basis) exceeding industry average.

Climate Goals & Targets

Environmental Challenges

• Nationwide ongoing Covid-19 pandemic.
• Transition to a fully Shari'ah-based Islamic Banking model.
• Global commodity price increases and uncertainty due to the war in Ukraine.
• High NPL ratio and governance issues in the banking sector.
• Inflationary, liquidity, and exchange rate pressures.
• Foreign currency crisis.
• Energy crisis.

Mitigation Strategies

• Collaborative efforts of the entire Standard Bank family.
• Consolidating capital adequacy through raising capital under Additional Tier-1.
• Prudent policy measures and pragmatic intervention.
• Raising policy interest rate, quantitative tightening, liquidity support facilities.
• Extending refinance facilities, discouraging imports of luxury goods, enhancing export facilities.
• Engaging with commercial banks and NBFIs to deal with NPLs and governance issues.
• Cautious progress and careful risk management.
• Strengthening investment monitoring and recovery systems.
• Diversification of business with focus on SME, Retail investment and Import-Export business.
• Intensive recovery drive and early settlement of court cases.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI