Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Community Development
• Employee Well-being
• Governance
• Human Rights

Environmental Achievements

• Reduced carbon footprint through server virtualization, energy-efficient technologies, and tree plantation initiatives.
• Initiated carbon footprint analysis of operations.
• Increased green portfolio by financing projects for effluent treatment plants, waste recycling plants, and biogas plants.

Social Achievements

• Launched IDLC Ladies Forum to address issues faced by female employees.
• Distributed 5,000 blankets and warm clothes to underprivileged communities.
• Implemented skills development programs for the RMG sector in collaboration with ILO and other organizations.
• Undertook a Model Village Project in North Bengal for community empowerment.
• Conducted financial literacy programs for various stakeholder groups.

Governance Achievements

• Improved internal control and compliance rating to "Strong" in a Bangladesh Bank inspection.
• Implemented a comprehensive Anti-Money Laundering and Combating Terrorist Financing Policy.
• Established a formal grievance mechanism for employees.

Climate Goals & Targets

Environmental Challenges

• Liquidity squeeze in the financial market.
• Bearish trend in the capital market.
• Shortage of gas and power.
• Lack of awareness among stakeholders regarding environmental and social issues.

Mitigation Strategies

• Incorporated Environmental Risk Management guidelines in credit assessment process.
• Voluntarily adopted a checklist based on UN Global Compact principles.
• Increased green portfolio.
• Implemented awareness campaigns and financial literacy programs.

Supply Chain Management

Responsible Procurement

• Requires clients to disclose incidence of child labor in their facilities.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI G3.1, UN Global Compact, UNEP FI

Sustainable Products & Innovation

• SME SACHAL Loan
• Revolving Short Term Loan
• RegistraLoan
• Construction Loan
• Home Loan Shield

Awards & Recognition

• SAFA Best Presented Accounts Awards (2011, 2005-2010)
• ICAB National Awards (2011, 2004, 2006-2010)
• ICMAB Best Corporate Award (2010), Best Corporate Performance Award (2008), National Best Corporate Award (2007)

Environmental Metrics

ESG Focus Areas

• Corporate governance, ethics and compliance
• Social and environmental obligations towards society and the marginalized
• Superior customer experience through continuous improvement

Environmental Achievements

• 1,000 saplings planted under the Tree Plantation Program
• 1,500 school children participated in the Environmental Awareness Campaign
• Server virtualization saved over 290,000 kWh of electricity and 166 tons of CO2 emissions

Social Achievements

• 58 marginalized women trained and facilitated with employment
• 30 intellectually disabled youth given vocational training
• 273 ready-made garment working mothers trained on infant care and breastfeeding
• Taka 9.93 million contributed to various social causes in 2015
• Launched IDLC Purnota, a loan exclusively targeted to women entrepreneurs in Bangladesh, with a book size of Taka 2,376.61 million by year-end

Governance Achievements

• Established an integrated CSR reporting framework
• First and only signatory to the UNEP FI from Bangladesh
• Endorsed the UNEP FI Declaration “MOBILISING 100 FINANCIAL INSTITUTIONS FOR ENERGY EFFICIENCY” at COP 21

Climate Goals & Targets

Environmental Challenges

• Lack of credit demand in the financial industry
• High market volatility
• Long-drawn IPO process alongside conservative valuations
• Lack of awareness regarding the benefits of green projects
• Loosely regulated industries that overlook gross level non-compliance

Mitigation Strategies

• Implemented automated credit appraisal system to reinforce service quality and save paper
• Introduced online appraisal system into smartphones for faster decision-making
• Launched IDLC Udbhabon, a comprehensive solution for ICT entrepreneurs
• Introduced CCMC (central customer monitoring cell) to monitor loan performance and communicate with clients
• Signed MoUs with SME Foundation and Bangladesh Bank for refinancing schemes
• Opened three new branches in Habiganj, Mymensingh, and Kushtia
• Strengthened credit appraisal process from an environment and social (E&S) perspective
• Adopting an extensive Environmental and Social Management System (ESMS)
• Conducted trainings on environmental and social risk and opportunity management

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Sustainable Products & Innovation

• IDLC Purnota
• IDLC Udbhabon
• Easy Invest
• Green financing products

Awards & Recognition

• 15th ICAB National Awards for “Best Presented Annual Reports 2014” (First Prize - Financial Services, Third Prize - Corporate Governance Disclosures)
• SAFA Best Presented Annual Report Awards 2013 (First Runner Up - SAARC Anniversary Award for Corporate Governance Disclosures, Certificate of Merit - Financial Services Sector)
• 2nd ICSB National Awards 2014 (Silver Prize)
• SAFA Best Presented Annual Report Awards 2014 (First Runner Up - SAARC Anniversary Award for Corporate Governance Disclosures, First Runner Up - Financial Services Sector)

Environmental Metrics

ESG Focus Areas

• Corporate governance, ethics and compliance
• Social and environmental obligations towards the community
• Capacity-building and enhancement of knowledge for key stakeholders
• Superior customer experience through enhanced communication and stakeholder accountability
• Green Banking

Environmental Achievements

• Achieved LEED Gold Certification for Chittagong branch (Commercial Interiors)
• Disbursed BDT 589.53 million in green financing (BDT 525.8 million in 2015)
• Planted 200 saplings at various locations
• First financial institution to finance a project using energy-efficient technologies and ESCO model
• First financial institution to arrange green industry syndication

Social Achievements

• Trained 242 marginalized women from North Bengal with 60% retention in the RMG sector (Far East – IDLC Skills Development Program)
• Supported 20 children at Shishu Bikash Chhaya orphanage
• Sponsored two female students at Dhaka Ahsania Mohila Mission Orphanage
• Partnered with Innovation for Wellbeing Foundation to pilot mental health programs in high schools
• Implemented a project to enhance infant care and breastfeeding skills of female garment factory workers in Chittagong
• Distributed emergency relief to 250 flood-hit families in Nilphamari and Rangpur

Governance Achievements

• Compliance with BSEC’s revised Corporate Governance Guideline and Bangladesh Bank’s DFIM Circular No. 7
• Established various committees (Executive Committee, Audit Committee, Management Committee, etc.) to ensure effective governance
• Implemented a Code of Conduct for all employees
• Established an Integrity Committee to promote good governance
• Established a Central Compliance Unit (CCU) for AML and ATA compliance

Climate Goals & Targets

Environmental Challenges

• Ensuring work-life balance for employees
• Creating a vibrant work environment
• Enhancing employee motivation and retention
• Talent development and career development
• Maintaining employee productivity
• Managing compensation
• Lack of awareness regarding the benefits of green projects
• Loosely regulated industries with non-compliance issues

Mitigation Strategies

• Restructured compensation and benefit policy
• Improved performance appraisal system
• Re-engineered recruitment and selection process
• Conducted training sessions led by foreign trainers
• Implemented automated credit appraisal system to reduce paper usage
• Launched a centralized operation system to accelerate service delivery
• Implemented a comprehensive credit scoring model
• Expanded branch network
• Actively marketed IDLC as a leader in promoting sustainability
• Engaged with IFC’s PaCT program and USAID’s CCEB team
• Organized regular training programs on green awareness

Supply Chain Management

Responsible Procurement

• Adherence to proper procurement regulations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Sustainable Products & Innovation

• Green financing products

Awards & Recognition

• 16th ICAB National Award for Best Presented Annual Report
• SAFA Best Presented Annual Report 2015
• ICMAB Best Corporate Award 2015
• 16th ICAB National Award for Integrated Reporting
• SAARC anniversary award for Corporate Governance Disclosure
• ICSB National Award - Corporate Governance Excellence 2015
• LEED Gold Certification (Chittagong branch)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Indirect Economic Impact
• Anti-corruption
• Tax
• Materials
• Energy
• Water and Effluence
• Emission
• Employment
• Occupational Health & Safety
• Training & Education
• Diversity and Equal Opportunity
• Non-discrimination
• Human Rights Assessment
• Local Communities
• Supplier Social Assessment
• Public Policy
• Customer Health & Safety
• Marketing and Labeling
• Customer Privacy
• Socio-Economic Compliance

Environmental Achievements

• Server virtualization reduced capital expenditure on physical servers, reduced electricity consumption and CO2 emissions by saving over 627,610 kWh of electricity and 377 tons of emissions from 124 virtual servers.
• Fuel consumption of vehicles reduced by 12.43%
• One branch achieved LEED Gold Certification

Social Achievements

• 100% retention rate of employees that took parental leave
• 155 training programs organized, totaling 23,831 training hours
• Food support provided to over 32,000 low-income individuals
• Supported marginalized people through CSR initiatives
• Alternative client service during COVID-19 to ensure customer health and safety

Governance Achievements

• Developed a strong risk management culture with transparency regarding operational risk issues.
• Implemented a whistleblower policy, resolving 1 case in 2020.
• Working on establishing an official sexual harassment policy by 2022.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting economic activity and customer access.
• Reduced fee income due to economic slump.

Mitigation Strategies

• Scaled up technological and human capital capabilities to remain accessible to customers.
• Implemented alternative client service channels during the pandemic.
• Provided food support and other aid to communities affected by the pandemic.

Supply Chain Management

Responsible Procurement

• Procurement manual guides unbiased vendor treatment, competitive costing (at least 3 quotations), and sustainable features in equipment procurement.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 10: Reduced Inequalities
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

IDLC's business and CSR activities are aligned with these SDGs through financing, investments, and operational practices.

Sustainable Products & Innovation

• Green Banking products/projects/initiatives

Awards & Recognition

• Euromoney Awards for Excellence (Best Investment Bank in Bangladesh)
• ICAB awards
• ICMAB Best Corporate Award
• Asia Money Best Bank for SME Award
• SAFA awards
• ICSB Best Presented Annual Report

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced per employee paper consumption by 0.72%
• Reduced per employee electricity consumption by 6.17%
• Increased Green Banking portfolio by around 262.43% over previous year
• Implemented a Tree Plantation program sponsoring 3000 saplings
• Initiative to build a solar-powered village

Social Achievements

• Launched Bangladesh’s 1st MFS based Digital Deposit program
• Launched own Digital Term Deposit
• Launched IDLC Income Fund
• Provided comprehensive medical service support to employees (e.g., storage of emergency oxygen tanks, medicine, test kits, contracts with diagnostic centres and 24/7 doctor support)
• Continued work from home initiatives
• Organized 185 trainings for 1,252 unique employees
• Around 50,000 individuals benefitted through various CSR activities (donating ambulance, emergency food support)

Governance Achievements

• Obtained external assurance on Financial Statements, Corporate Governance, Provident Fund Financial Audit, and Gratuity fund valuation
• Achieved ‘Gold’ award at the ICMAB Best Corporate Award 2020 under NBFI category
• Awarded 1st position in 3 categories by Institute of Chartered Accountants of Bangladesh (ICAB)
• Received UN Women Asia-Pacific WEPs Awards 2021
• Received Award for the Highest TAX Payer for the Fiscal Year 2020-2021 under NBFI category

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on the economy
• Maintaining portfolio quality
• Lower lending opportunity
• Sustaining excess liquidity position
• Managing operating expenses
• Evolving needs of customers and rapid changes in Technology
• Ongoing risk of system failure, connectivity failure & data breach
• Attaining process improvements
• Serving and reaching customers offline
• Implementing an effective resource optimization system
• Creating awareness among clients regarding the benefits of green projects
• Ensuring Green Office practices are maintained

Mitigation Strategies

• Increased focus towards collection efforts and continued prudent lending
• Generated investment income from capital market operations
• Proactively managed treasury funds and focused on sustainable retail deposit growth
• Invested in technology, process improvements and training to improve productivity
• Launched digital deposit products
• Increased focus on digital campaigns
• Quick adoption and improvisation
• Continuous assessment of existing controls and adoption of appropriate measures
• Implemented an organization-wide Carbon Management & Resource Optimization Model
• Leveraged relationships with regulators and multilateral organizations to increase green financing
• Conducted training and seminars to increase awareness

Supply Chain Management

Responsible Procurement

• Continuous upgradation and enforcement of internal procurement policies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI-GR4 Framework, International Integrated Reporting Framework

Certifications: LEED Gold Certification

Third-party Assurance: Hoda Vasi Chowdhury & Co., Chartered Accountants (Financial Statements); Itrat Husain & Associates, Chartered Secretaries (Corporate Governance)

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

Initiatives contribute to SDGs through financial inclusion, community development, environmental protection, and responsible business practices.

Sustainable Products & Innovation

• Digital deposit products
• Affordable housing finance solutions
• Green financing products

Awards & Recognition

• ICAB National Award for Best Presented Annual Reports
• ICMAB Best Corporate Award
• SAFA BPA Award
• ICSB National Award for Corporate Governance Excellence
• Bangladesh Fintech Award
• Asiamoney Best Bank for SME Award
• FinanceAsia Country Awards Best Investment Bank
• SME Finance Forum Global SME Awards

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental

Environmental Achievements

• Implemented energy-efficient measures in offices and branches, reduced paper usage
• Achieved LEED Gold Certification for a Chattogram branch

Social Achievements

• CSR interventions reached 750,775 citizens
• Financial literacy program reached 1.5 lac participants
• Launched several initiatives to support SMEs
• Partnered with local charities and NGOs to support social causes
• Expanded horizons in education and healthcare
• IDLC Purnota Loan supported 5,000 women entrepreneurs

Governance Achievements

• Strengthened risk management and compliance frameworks
• Implemented measures to prevent fraud and corruption
• Established an independent board of directors

Climate Goals & Targets

Environmental Challenges

• Macroeconomic imbalances, management of liquidity while attaining growth
• Altered borrower repayment post-pandemic
• Rising geopolitical uncertainties impacting energy transition and social security

Mitigation Strategies

• Maintained a cautious stance in lending operations
• Stricter focus on quality management of loan book
• Increased expenditure in digitization for improved client reach
• Collaboration and partnerships to drive systematic change

Supply Chain Management

Responsible Procurement

• Procurement manual, unbiased vendor evaluation, compliance with guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guideline Standards

Certifications: ISO 27001

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 17

IDLC aligns its business and CSR activities with the 12 SDGs mentioned.

Sustainable Products & Innovation

• Purnota (women entrepreneur loan)
• Digital Savings Scheme

Awards & Recognition

• ICMAB Best Corporate Award
• ICAB National Award
• ICSB Best Presented Annual Report
• Bangladesh Bank Award for Sustainability Rating
• SAFA BPA Award
• FinanceAsia Country Awards