Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Energy
• Emissions
• Employment
• Local Communities & CSR
• Anti-corruption

Environmental Achievements

• Improved Environmental and Social Management System (ESMS) launched with support from DEG, Germany.
• Invested in solar power.

Social Achievements

• Success in opening 50 agent banking centers across the country.
• Contribution to the underprivileged people of the society through CSR activities.
• Investment in uniform customer service assurance.
• Expanded outreach and capacity as part of financial inclusion for the mass people through Agent Banking.
• MTB Bhagyobati and MTB Gunabati loan products for women entrepreneurs.

Governance Achievements

• Continued to improve the governance architecture and system.
• Enhanced the working mechanisms of the Board of Directors.
• Earnestly fulfilled its responsibilities for all stakeholders including shareholders, customers, employees and the society, with a view to ensuring the best practices in corporate governance.
• Maintained high standards of compliance and governance.

Climate Goals & Targets

Environmental Challenges

• Stiff competition in the banking industry.
• Takeover attempts.
• Margin reduction due to excess liquidity and price wars.
• Slowdown in new disbursements under green financing schemes due to narrower interest rate difference amidst low lending rates.
• Decline in remittance growth.
• Increasing import bills.
• Rise in global commodity prices.
• Devastating flood damaging crop production.
• Significant gap between deposit rates in scheduled banks and rates offered by National Savings Certificates (NSCs).
• Some private banks breaching the regulatory limit of Advance Deposit ratio.

Mitigation Strategies

• Concentrating on growing strongly in the SME segment.
• Improving reach to those in financing need.
• Re-arranging deposit and advances portfolio mix for reducing cost of fund and increasing yield on advances.
• Improved operating efficiency through process optimizations.
• Improved Environmental and Social Management System (ESMS).
• Investment in technological advancement.
• Close communication with regulators and trade bodies.
• Separate compliance team to ensure compliance across the Group.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI-G4 Framework, Bangladesh Securities and Exchange Commission (BSEC) revised Corporate Governance Guidelines (CGG)

Third-party Assurance: A. Qasem & Co. Chartered Accountants (member of Ernst & Young), MABS & Partners Chartered Accountants, Khan Wahab Shafique Rahman & Co. (member of mgiworldwide), Credit Rating Information and Services Limited (CRISL)

Sustainable Products & Innovation

• MTB Green Energy Loan
• MTB NEER

Awards & Recognition

• Women Entrepreneur Friendly Bank of the Year 2014
• SME Bank of the Year 2014

Environmental Metrics

ESG Focus Areas

• Customer experience
• Digital banking transformation
• Financial inclusion
• Employee engagement
• Sustainability
• Corporate governance
• Environmental risk management
• Social impact
• Compliance

Environmental Achievements

• Reduced per employee electricity consumption by 0.39%
• Reduced per employee diesel consumption by 16.73%
• 9 branches and 7 ATMs run by solar energy (44.6KW capacity)
• Initiatives for tree plantation and distribution of Amrapali samplings
• Environmental due diligence for each MTB investment
• No investment in businesses negatively impacting life below water or on land
• Rain water harvesting facility with 10,000 ltr capacity in MTB tower
• Loans provided under Bangladesh Bank refinance scheme for solid, liquid and ETP management

Social Achievements

• Opened 40 new MTB Agent Banking Centres (140 total), serving 40,000 customers with BDT 2,203 million in deposits and BDT 1,711 million in foreign remittance disbursements
• Launched third state-of-the-art Air Lounge at Osmani International Airport, Sylhet
• Tied up with Priority Pass, Diners Club, and DragonPass for access to international air lounges
• 10% increase in the number of female employees
• BDT 53.38 million spent on CSR activities
• Support for underprivileged, including blanket distribution, after-school programs, farmer training, medical camps, and assistance for children with special needs
• Financial support for Manobik Shahajya Sangstha (MSS) in Tangail, treating 934 patients and distributing 207 eyeglasses
• BDT 48.33 million loan provided under MTB Neer for semi-pacca houses
• Total SME loan outstanding BDT 31.08 billion
• MoU with JAAGO foundation for education of destitute children
• MoU with BERDO for support of visually impaired children

Governance Achievements

• Obtained Payment Card Industry Data Security Standard (PCI DSS) certification
• Launched MPay, a QR Code based payment facility
• Became the first bank in Bangladesh to launch a Chinese plastic card (UnionPay Credit Card)
• Launched the first-ever National Interoperable Bangla QR with Mastercard and UnionPay
• Issued co-branded cards with four renowned organizations
• Improved Environmental Risk Management (ERM) Guidelines and established Environmental & Social Risk Management (ERSM) Policy and Procedure
• Consistently maintained lower NPL ratio compared to industry average (5.39% vs 9.32%)
• Compliance with BSEC and Bangladesh Bank guidelines for corporate governance
• Strong code of conduct and speak-up policy
• Centralized banking software implementation

Climate Goals & Targets

Environmental Challenges

• High competition in the banking sector
• Rising Non-Performing Loans (NPLs)
• Low operating profit margin compared to peers
• High cost-to-income ratio (around 52%)
• Credit concentration in corporate lending
• Decentralized business model
• Regulatory capital requirements (Basel III)
• Cybersecurity threats
• Forex fluctuations
• COVID-19 pandemic impact on the economy and banking sector

Mitigation Strategies

• Investment in technology for operational efficiency and customer experience
• Diversification of loan portfolio to SME and retail segments
• Centralization of business model and processes
• Raising capital through subordinated debt instruments and perpetual bonds
• Strengthening cybersecurity measures
• Employing FX risk management techniques
• Implementation of Work From Home (WFH) policy
• Creation of MTB COVID-19 Donation Fund
• Donation to Prime Minister’s Relief and Welfare Fund
• Construction of disinfectant chambers
• Provision of N95 masks to hospitals
• Emphasis on digital banking solutions
• Development of attractive deposit products
• Focus on acquiring low-cost deposits
• Enhancement of non-funded income

Supply Chain Management

Responsible Procurement

• Supplier payment policy with clear payment terms and tax deductions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines (core option)

Certifications: PCI DSS

Third-party Assurance: A. Qasem & Co. Chartered Accountants (EY)

Sustainable Products & Innovation

• MTB Green Energy Loan

Awards & Recognition

• Best Employer Brand Award 2018
• Dream Company to Work for Award 2018
• Best Presented Annual Report – 2018 (3rd position)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Economic Growth
• Social Impact
• Financial Inclusion
• Gender Equality
• Good Governance

Environmental Achievements

• Installed 41.72 KW of solar panels reducing total power consumption.
• Reduced energy consumption through digital banking initiatives.
• Implemented rainwater harvesting at MTB Tower Branch.

Social Achievements

• Launched MTB Angona, a women's empowerment program.
• Distributed 75,000 blankets to the Prime Minister’s Relief Fund.
• Donated BDT 40 million to the Prime Minister’s Home Construction Fund.
• Partnered with ESDO for the Plastic Free Campus project.
• Supported various educational initiatives through scholarships and stipends.

Governance Achievements

• Maintained a strong corporate governance structure and culture.
• Implemented robust AML/CFT compliance program.
• Established a dedicated Sustainable Finance Department.

Climate Goals & Targets

Environmental Challenges

• Global and local economic uncertainty, including inflation and foreign exchange volatility.
• High Non-Performing Loan (NPL) ratio in the banking sector.
• Climate change risks and the need for sustainable practices.

Mitigation Strategies

• Refined long-term strategy to ensure relevance and viability.
• Implemented rigorous credit policies and underwriting practices.
• Developed innovative green financing solutions.
• Strengthened online banking security and reduced dependency on physical cards.
• Implemented an Environment and Social Risk Management System.

Supply Chain Management

Responsible Procurement

• MTB Procurement Manual
• Codes of ethics for suppliers and MTB personnel.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Chronic changes in precipitation patterns
• Rising mean temperatures
• Rising sea levels

Transition Risks

• Regulatory changes
• Market shifts
• Technological substitution

Opportunities

• Investment in renewable energy
• Development of energy-efficient products
• Participation in carbon markets

Reporting Standards

Frameworks Used: GRI Standards: Core option

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 17

MTB's initiatives contribute to these goals through various CSR activities, sustainable finance, and employee empowerment programs.

Sustainable Products & Innovation

• MTB Green Energy loan
• Digital banking services
• MTB Angona

Awards & Recognition

• Best Bank for Diversity and Inclusion in Bangladesh 2023
• 2023 Global Climate Partnership Award
• 3G Excellence in Sustainability Reporting Award 2023